(Identifying Balance Sheet Deficiencies) The assets of Fonzarelli Corporation are presented on the next page (000s omitted).
|
FONZARELLI CORPORATION |
||
|
Assets |
||
|
Current assets |
||
|
Cash |
$100,000 |
|
|
Unclaimed payroll checks |
27,500 |
|
|
Debt investments (trading) (fair value $30,000) at cost |
37,000 |
|
|
Accounts receivable (less bad debt reserve) |
75,000 |
|
|
Inventory—at lower of cost (determined by the next in, |
240,000 |
|
|
Total current assets |
479,500 |
|
|
Tangible assets |
||
|
Land (less accumulated depreciation) |
80,000 |
|
|
Buildings and equipment |
$800,000 |
|
|
Less: Accumulated depreciation |
250,000 |
550,000 |
|
Net tangible assets |
630,000 |
|
|
Long term investments |
||
|
Stocks and bonds |
100,000 |
|
|
Treasury stock |
70,000 |
|
|
Total long term investments |
170,000 |
|
|
Other assets |
||
|
Discount on bonds payable |
19,400 |
|
|
Sinking fund |
975,000 |
|
|
Total other assets |
994,400 |
|
|
Total assets |
$2,273,900 |
|
Instructions
Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation’s assets.